Magazine article Public Finance

Inverclyde Redeems Itself with Council Tax Cut

Magazine article Public Finance

Inverclyde Redeems Itself with Council Tax Cut

Article excerpt

A council heavily criticised in a watchdog report has become the first in Scotland to cut its council tax since local government was reorganised in 19%.

Inverclyde Council has cut the average council tax for 2007/08 by 0.65%. The new average Band D figure is now £1,198, a reduction of £8 on the tax for 2006/07.

The move comes after an Audit Scotland report last year slammed the Liberal Democrat-led authority for fundamental management weaknesses and lack of effective leadership and direction.

A 'hit squad' was sent in and the then chief executive resigned. The council's LibDem leader, Alan Blair, one of those criticised by the spending watchdog, described the council tax decision as a very important day for Inverclyde and one that demonstrated sound financial management

He added: 'This is a sustainable and responsible budget that does not rely on us dipping into our reserves but ensures long-term improvement. …

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